Life Assurance Query

supersonicdave

Hi all,

I have now been a homeowner for a week! I am living with my long term girlfriend and have a few queries about life assurance.

I have an £86,000 mortgage in just my name as my girlfriend is currently a student. When all the bills are included we end up paying roughly half each of the household outgoings. I have a life policy with work which pays 4 times salary – which would cover the full mortgage.

Is it worth getting any other life assurance for either myself, myself and partner, or just partner? And if so what are the advantages of doing so?

Thanks,
Dave.

moon1981

Hello - I dont have an answer as such, but would be interested in the answer to this.

I have had life insurance for approx 3 years for house, which I think is probably a waste - and would look to cancel. And I have been offered life insurance again for present property, by IFA, but thinking of cancelling. I dont see the point, as if it ever happened, you could look at selling to raise equity.

kingkano

For Dave : Do you have a will, leaving the house to your girlfriend? As it currently stands if you die, she has no rights to anything. Your house will pass to your next of kin (parents?). She will have no recognised ownership as she isn't on the mortgage/deeds. As such life insurance for you I guess doesn't matter unless you would want the house paid off for your next of kin.

For Moon1981 : As above applies if its just you on the mortgage life insurance probably isn't that important.

In general if you are a joint owner I think Life Assurance/Insurance is a must. You may say hey the wife can just sell the house if I die, but thats maybe a little short sighted. They would need to cover the mortgage payments on their own single salary while trying to sell (all the while grieving for you as well). If they are in negative equity selling might not be an option. People also often forget to reassess these things when their circumstances change (children etc) so it doesnt hurt to put something in place NOW.

Personally we went for a single policy paid out on first death for the value of the mortgage (decreasing), which was pretty cheap (£10 a month). Which means if one of us died the other would have the house paid off and one less thing to worry about.